LendingClub vs Payoff: Refinance Options Compared

LendingClub and Payoff are not two equivalent refinance lenders today: Payoff’s personal-loan business became part of Happy Money, while LendingClub continues to offer personal loans that may be used to consolidate eligible debt. This calculator estimates the monthly payment and total interest for a fixed-rate loan; enter the amount, APR and term to see the estimated results, then compare them with current written offers.

Formula

The calculator uses the standard fixed-payment amortizing-loan formula. Let P be the loan amount in dollars, a the annual percentage rate (APR) in percent, r = a / 1200 the monthly rate as a decimal, and n = 12 × years the number of monthly payments. The monthly payment is P × r / [1 − (1 + r)⁻ⁿ], rounded to cents. Estimated total interest is the rounded monthly payment multiplied by the number of payments, less the original principal. The result assumes the stated APR applies for the full term.

Worked Example

Using the defaults: P = $20,000, APR = 8%, and term = 5 years.

1. Monthly rate: 8 / 1200 = 0.0066667.
2. Number of payments: 5 × 12 = 60.
3. Payment before rounding: 20,000 × 0.0066667 / [1 − (1.0066667)⁻⁶⁰] ≈ $405.53.
4. Estimated total interest, using the rounded payment: $405.53 × 60 − $20,000 = $4,331.80.

These are formula estimates, not an offer or a quote. The exact payment may differ if the lender’s disclosed APR, fees, payment dates, or loan amount differs from the inputs.

Assumptions

• The APR and payment remain fixed throughout the term.
• Payments are made monthly, with the first payment one month after borrowing.
• Interest compounds monthly at APR divided by 12.
• Fees, taxes, insurance, PMI and escrow are not included; enter a lender-provided APR and amount that reflect the offer as disclosed.

How LendingClub and Payoff Relate

“Payoff” commonly refers to the former Payoff personal-loan brand and its debt-consolidation products. Payoff’s personal-loan business became part of Happy Money; therefore, comparing a new LendingClub offer with an old Payoff loan or an outdated Payoff page can be misleading. Product names, availability, and servicing arrangements can change, so check the current lender or servicer documentation for the company actually making or managing an offer.

LendingClub is a separate financial company that offers personal loans, including loans that may be used to consolidate debt, subject to its current terms and eligibility process. Neither a brand name nor the phrase “debt consolidation” establishes that a loan will refinance a particular account. Confirm in the current application and agreement which debts can be paid, how proceeds are delivered, and whether the offer is a new personal loan or another product.

What to Compare in a Refinance Offer

For a sound comparison, use actual written disclosures rather than assumed or advertised figures. Request the same loan amount and a comparable term when possible. Then review:

• APR and interest rate: APR is intended to reflect the annual borrowing cost as disclosed, while the stated interest rate may not include all charges. Check how each offer defines and calculates it.
• Fees and net proceeds: An origination fee or other charge can reduce the cash available to pay creditors, even if the loan’s stated principal is higher.
• Term and total paid: A longer term can reduce the scheduled monthly payment while increasing total interest. Compare the payment and the total of scheduled payments, not just one figure.
• Payoff process: Check whether the lender pays creditors directly or sends money to you, and confirm that each old account receives the correct payoff amount by the required date.
• Prepayment and late-payment terms: Read the agreement for the conditions and charges that apply. Do not assume terms are identical across lenders or products.

For example, a $20,000 balance at the calculator’s 8% APR and five-year term produces an estimated payment of $405.53 and $4,331.80 in interest. A different offer with a longer term could show a lower monthly payment but still cost more overall. To compare that offer accurately, enter its own amount, APR and term, and separately account for disclosed fees or any difference between the amount borrowed and the amount reaching creditors.

Common Refinance Pitfalls and Alternatives

Consolidating balances does not erase debt; it replaces or restructures what is owed. A common misconception is that moving credit-card balances into a personal loan automatically improves the borrower’s overall outcome. If the old balances remain available and grow again, the borrower could end up with both the new loan and renewed card debt. Also verify whether the new loan’s payment schedule fits the repayment plan and whether all targeted balances are included.

Other options depend on the debt and current terms. A reader might compare keeping an existing balance and paying it down, asking a creditor about its repayment arrangements, or reviewing a balance-transfer offer or a secured borrowing product. Each has separate costs, eligibility terms, and risks; this calculator does not compare those products or determine whether one is suitable. Get the exact figures and conditions directly from the relevant provider.

Frequently Asked Questions

Is Payoff still a separate personal-loan lender?
Payoff’s personal-loan business became part of Happy Money. Check current company and account documents to identify the lender or servicer for a specific product; historical Payoff information may not describe a current offer.

Can a LendingClub personal loan pay off credit cards?
Personal loans may be offered for debt consolidation, but permitted uses and payment procedures depend on the current offer. Confirm eligibility, creditor-payment details, and terms in the application and agreement.

Does a lower monthly payment mean a refinance costs less?
No. A longer repayment term can lower the scheduled payment but increase total interest. Compare the full payment schedule and disclosed fees as well as the monthly amount.

Does this calculator include an origination fee?
No. It calculates payments from the entered principal, APR, and term. Review the lender’s disclosure to see whether fees are included in its APR or deducted from proceeds, and account for them separately when comparing offers.

Will a refinance change my credit score?
This calculator cannot predict credit-score effects. Outcomes depend on individual credit files and how accounts and applications are reported. Ask the provider how it handles applications and consult the relevant credit-reporting information for details.

How do I compare an existing loan with a new offer?
Get the existing loan’s payoff amount and remaining schedule, then compare them with the new offer’s APR, fees, term, payment, and net proceeds. The calculator estimates a new loan’s scheduled payment; it does not calculate an exact payoff quote for an existing account. This result is an estimate, and the lender’s disclosure gives the exact figures.

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in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2